Anyone else ever have a startup verbally extend an offer, discuss comp/start timing, then suddenly pull it before paperwork with little explanation?

Curious how common this actually is at smaller companies and what the usual real-world reasons are:

budget/headcount changes?
compensation mismatch?
founder second thoughts?
background/reference checks?
something else?

Trying to understand how often this is “startup chaos” vs something candidate-specific.

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Posting as :
works at
You are currently posting as works at

Position could get cancelled and they could move in another direction.

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I've seen it happen more than once in this hyper competitive market. Generally means they found someone they liked better. Sometimes verbal offers are a trick they use to reel you in even though they've haven't wrapped up interviewing, and with no written commitments they're free to drop you if they choose.

Budget and headcount changes are the most common that I’ve been privy to.

Yes it happens unfortunately

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